The Court of Justice of the State of Goiás has rejected a request filed by Monsanto of Brazil to suspend the licensing of the technology of the soybean seed Intacta by the manufacturer Seeds Talismã. The company is in the process of seeking judicial recovery, and Bayer, the current holder of the Monsanto trademark, requested that the court "adopts the appropriate judicial measures to ensure its rights."

The decision of the appeals court sets a precedent for any Brazilian seed company in financial difficulties to delay the payment of royalties. This is another defeat for Monsanto, which is trying to defend the intellectual property rights of its technology.

Last July, a Brazilian judge ordered Monsanto's local units to deposit royalties related to Intacta RR2 Pro into a judicial account, pending a ruling on litigation related to a patent dispute between the company and Brazilian soy producers.

"Monsanto has attempted to suspend the licensing agreement, so it might negotiate better terms in Talismã's judicial recovery," said Daniel Amaral, a lawyer representing the company in recovery. He maintains that Talismã will only be able to operate its business, reorganize its operations and pay its $49 million debt if it retains the right to use Intacta's technology.

Talismã owes $ 40 million to Monsanto, which is the largest unsecured creditor. So far this year, Talisman has paid some $ 8 million to Monsanto in royalties, Amaral said.